RFA Calls EWG Report Flawed

Cindy Zimmerman

RFANewlogoThe Renewable Fuels Association is disputing findings of an Environmental Working Group report released today entitled, “Ethanol’s Broken Promise: Using Less Corn Ethanol Reduces Greenhouse Gas Emissions.”

RFA president and CEO Bob Dinneen says the report relies on “overblown and disputed assumptions of land use change, making ethanol from corn appear to be worse than gasoline,” which he calls “simply preposterous particularly when contrasted with the ever-rising greenhouse gas (GHG) emissions from tar sands and fracking.”

“The Department of Energy’s GREET model clearly shows that corn ethanol reduces GHG emissions by 34 percent compared to gasoline, including hypothetical land use change emissions,” says Dinneen in a statement. “Additionally, a Life Cycle Associates study found that corn ethanol reduces GHG emissions by 37–40 percent when compared to tight oil from fracking and tar sands.”

The EWG report claims “that the federal corn ethanol mandate has driven up food prices, strained agricultural markets, increased competition for arable land and promoted conversion of uncultivated land to grow crops.” Stay tuned for more reaction from the ethanol industry on this report.

Ethanol, Ethanol News, RFA, RFS

Voluntary Quality Control Pays Off for Biodiesel

John Davis

BQ9000labA voluntary quality control program is paying dividends to the biodiesel industry as it has helped maintain high standards for the green fuel, and in turn, kept demand up for it. This article from Biodiesel Magazine says the BQ-9000 programs help those selling and using biodiesel.

“Implementing BQ-9000 and getting accredited is a lot of work, but we find following BQ-9000 structure and rules really helps manage and run Thumb BioEnergy,” said Leon Jackson of Thumb BioEnergy, a small biodiesel producer in Sandusky, Mich. “It has really helped us maximize production and optimize the quality of our fuel. I would highly recommend becoming a BQ-9000-certified producer.”

The BQ-9000 quality assurance programs are designed to help ensure that the biodiesel fuel produced, blended, and distributed throughout the U.S. meets and is maintained against the appropriate ASTM specifications. There are currently three voluntary programs developed for producers, fuel marketers and independent laboratories. While these are not product quality certification programs, they ensure the individual companies follow the necessary policies and procedures to maintain the fuel throughout the process by a checklist of independently audited procedures.

The article also points out that nearly 90 percent of all biodiesel produced last year came from BQ-9000-certified producers, ensuring consumers and retailers have a quality product.

Biodiesel

Microbes Future for Biodiesel, Hydrogen Cells

John Davis

Research at the Massachusetts Institute of Technology (MIT) looks to turn microbes into the next big thing for biodiesel and hydrogen fuel cells. This story from MIT says scientists at the school are looking to capture energy that might be flushed away in wastewater.

buie1“Even if you could get only a fraction of that back, you could offset the amount of energy it takes to process the wastewater, and potentially sell some back to grid,” says Cullen Buie, who heads up MIT’s Laboratory for Energy and Microsystems Innovation (LEMI). “We’re working on a way to use microbial fuel cells to harvest some of the energy that is currently being flushed down the toilet.”

Buie’s work on microbial fuel cells is just one effort of many at LEMI, where projects draw upon fields including microfluidics, electrokinetics, electrochemistry, and microscale surface engineering. In addition to microbial fuel cells, potential applications include biodiesel harvesting, cell sorting for genetic research, ship-hull protection, and perhaps Buie’s biggest breakthrough to date: a low-cost, hydrogen bromine flow battery that doesn’t require a membrane.

Buie founded LEMI when he arrived at MIT in 2010. “The lab encompasses all the things that interest me, including alternative energy,” says Buie, an assistant professor of mechanical engineering. “A lot of our applications are dependent on microscale manipulation or principles of microfluidics. We also look at electric fields in fluid flow in order to discriminate, or sort cells, based on physical properties.”

The idea behind the process is that microbial fuel cells use bacteria, instead of precious metals, as catalysts in chemical reactions that produce energy. In addition, the technology can be applied to harvesting algae for the oil used to make biodiesel.

Biodiesel, Hydrogen

Brazil Upping Biodiesel Blend Requirement

John Davis

brazilMore biodiesel will be blended into fuel used in Brazil. This story from Reuters says the South American country will up its biodiesel mandate to 6 percent in July and to 7 percent in November, a rise from the current 5 percent biodiesel blend with diesel.

“The increase in the biodiesel blend will allow Brazil to substitute the import of 1.2 billion liters (264 million U.S. gallons) of diesel a year,” [Mines and Energy Minister Edison] Lobao said at an event in Brasilia.

Brazil will also set up a band for the minimum biodiesel requirement to be added to diesel that will range between 5 and 7 percent and vary according to economic conditions, like a similar band for blending ethanol into gasoline, the biofuels coordinator at the Agricultural Development Ministry, André Machado, told Reuters.

Changing the blend requirement for biodiesel has been on the table for years but faced resistance from the Finance Ministry, which has struggled to keep inflation within the central bank’s target range ahead of the presidential election in October.

Opponents of the move tried to raise fears that it would raise commodity soy prices, but recent studies showed that impact would be negligible. The larger blend requirement could raise domestic consumption of biodiesel by about 300 million gallons annually.

Biodiesel, International

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFElevance Renewable Sciences, Inc. has announced that Steven Mills, former Chief Financial Officer at Amyris, Inc., will join Elevance’s board of directors. Mills has extensive experience in the fields of accounting, corporate finance, strategic planning, and mergers and acquisitions.
  • American Ethanol will host members of the Armed Forces from Dover Air Force Base (AFB) participating in the NASCAR Troops to the Track Presented by Bank of America™ during the Fed Ex 400 at Dover International Speedway. American Ethanol is a year-long supporter of the Armed Forces Foundation. Dover AFB is the home of the Mortuary Affairs division of the Armed Forces, the division responsible for the care and final rights of fallen service members who were killed while serving our nation.
  • The National Algae Association is announcing a Call for Presentations for the next Algae Production Workshop to be held in Texas in July 2014. We will be focusing on five (5) areas: HP for astaxanthin, feeds, food, CO2 sequestration and wastewater. Please submit your presentation by June 15, 2014. Workshops are open and collaborative forums to learn and share information in the different methods and commercial processes involved in the algae production industry.
  • Ellomay Capital Ltd., an emerging operator in the renewable energy and energy infrastructure sector, has announced its entry into a binding Letter of Intent for the purchase of 3 photovoltaic solar plants with approximately 5.6MWp, with nominal output of approximately 5.2MWn). The PV plants are ground mounted fixed technology plants and are located in Murcia, Spain. The PV Plants are already constructed and operating and were connected to the Spanish national grid in 2011. According to the Letter of Intent, the PV Plants and all associated assets and rights shall be purchased by Ellomay for an aggregate purchase price of Euro 9.5 million or approximately US $13 million, subject to certain purchase price adjustments..
    • Bioenergy Bytes

    New Wind Turbine Offers Quiet Rooftop Power

    John Davis

    liamWhile rooftop wind turbines aren’t a new idea, one company might have solved the issue of the noise they can generate that keeps most homeowners from putting them in. This article from gizmag.com says Dutch-based The Archimedes has introduced its Liam F1 Urban Wind Turbine, which also brings an energy yield that is “80 percent of the maximum that is theoretically feasible” to the table… quite the claim considering most conventional wind turbines average around 25 to 50 percent.

    The 75-kg (165-lb) 1.5-meter (5-ft)-wide Liam obviously doesn’t look much like a typical turbine. It draws on the form of the nautilus shell, and the screw pump invented by ancient Greek mathematician Archimedes of Syracuse.

    That form factor reportedly results in minimal mechanical resistance, allowing it to spin very freely and to operate quietly – blade noise is one of the common complaints regarding rooftop wind turbines. Additionally, the design is claimed to keep it always pointing into the wind for maximum yield.

    Along with its claim of being able to achieve 80 percent of Betz’ limit, The Archimedes adds that “The Liam F1 generates an average of 1,500 kilowatt-hours of energy [per year] at a wind-speed of 5 m/s [16.4 ft/s], which resembles half of the power consumption of a common household.”

    The new wind turbine should be available July 1st with a price tag of about $5,450.

    Wind

    Wind Best Option to Meet EPA Pollution Rule

    John Davis

    awealogoA new report shows that wind energy is probably the best way to meet a proposed new federal government rule regarding carbon pollution for existing power plants. The American Wind Energy Association (AWEA) has just published a new white paper that shows wind is one of the biggest, fastest, cheapest ways states can meet the U.S. Environmental Protection Agency rule on limiting carbon dioxide pollution expected to be published June 2.

    Among the key findings in the new report are:

    The 167.7 million megawatt-hours (MWh) of wind energy produced in the U.S. in 2013 reduced CO2 emissions by 126.8 million tons, the equivalent of reducing power sector emissions by more than 5 percent, or taking 20 million cars off the road.

    The top 10 states by volume of carbon reductions from wind energy are: Texas, Illinois, California, Colorado, Iowa, Missouri, Oklahoma, Wisconsin, Minnesota and Wyoming.

    States achieving a reduction in carbon emissions of 10 percent or more (compared to a 2011 baseline) from wind energy alone include California, Colorado, Idaho, Iowa, Kansas, Minnesota, Nebraska, Oregon, South Dakota, Vermont, and Washington State, with Oklahoma, Wisconsin and Wyoming coming in just under 10%.

    Wind energy also currently reduces sulfur dioxide (SO2) emissions by nearly 347 million pounds per year and nitrous oxide (NOx) emissions by 214 million pounds per year. These pollutants acidify lakes and streams, contribute to smog, and negatively impact public health.

    AWEA officials say the best part of this news is that many states and their utilities are already familiar with the affordable, reliable product that wind energy provides.

    EPA, Wind

    How to Counter “Evils-of-Corn-Ethanol” Argument

    John Davis

    corn-harvestWith the unofficial start of summer, there’s no doubt you’ll be at picnics, reunions, get-togethers, etc., and there’s a pretty good chance that if you’re involved in ethanol, there’ll be somebody wanting to debate its merits… or more specifically, its evils. This article from Ethanol Producer Magazine relates a conversation the managing editor had on how corn ethanol is not the villain it is portrayed to be.

    One of my main points to her was that advanced biofuels wouldn’t be an option if it wasn’t for the first generation industry. I’ve said it before and I’ll say it again, many of the same companies that now produce corn ethanol are also working to produce cellulosic ethanol. One example is a small plant in Galva, Ill., that is working to start up a bolt on technology that will produce ethanol from the cellulosic material in a corn kernel. Other current corn ethanol producing companies are targeting corn stover for cellulosic ethanol production. My friend was surprised to hear how close some of these companies are to completing construction and producing commercial-scale volumes of advanced biofuels.

    I then addressed the “corn-ethanol is bad” impression she had, with analogy I’ve used before. We’re both mothers of young daughters so it’s one that makes sense to both of us. Children don’t come out of the womb walking. They must first master some basic skills like sitting up and rolling over. And then, once they do walk, it’s not like they abandon sitting up and rolling over because they are “bad” skills or things only babies do. The U.S. corn ethanol industry has already done a lot of good for this country, by reducing oil imports and providing jobs, for example, and it will continue to contribute positively in the future.

    She was able to continue her case by pointing out how the corn ethanol industry has improved its efficiency, knocking holes in arguments that it costs more energy to produce it than it produces.

    You might not convince everyone on the facts you know are true about ethanol and its relationship to corn, but at least you should be well-armed in the fight.

    corn, Ethanol, Ethanol News

    Forum Offers Info on RFS2, RINs and Biodiesel

    John Davis

    OPISA forum this fall will offer information on the policy and economic drivers of biofuels supply and demand, and there’s just a few days to register for the early bird rate. OPIS is offering its 6th annual RFS2, RINs and Biodiesel Forum, Oct. 16-17, 2014 in Chicago, in order to help you know more about a range of topics, from compliance to pricing strategies to financing.

    If you’re an obligated party such as a refiner or fuels distributor, a biofuels company, or a service provider to the industry, you simply cannot put yourself at risk of potential federal fines of $37,500 per day per violation for non-compliance.

    Here are some of the questions that our experts will answer (and don’t forget to come with your own questions for the Q&As that are part of every session!):

    What do the final 2014 biofuels blending mandates mean for biofuels
    production and prices?
    How can obligated parties utilize a Quality Assurance Plan (QAP) to
    reduce their compliance burden and risk?
    Where are RINs prices headed in the next few months—and next few years?
    Can the biodiesel industry thrive without the blenders’ tax credit?
    What is the proper course of action to successfully secure financing
    for building a biofuels plant?
    Has the cellulosic industry finally turned the corner to commercial viability?

    In addition, we will provide updates on the major changes taking place in California, under both the Low Carbon Fuel Standard and the state’s Greenhouse Gas Cap-and-Trade program that will sweep in for fuels distributors, starting on January 1, 2015.

    The forum also takes a look at Canada’s growing biofuels industry and how it affects and is affected by U.S. biofuels markets and the RFS2 program.

    Registration and more information is available here.

    Biodiesel, RFS, RINS

    Ethanol Blending Margins Positive Despite Price Rise

    John Davis

    Despite a 60 percent increase in ethanol prices, a new record hit last winter, ethanol blending margins stayed positive for most of the period. This analysis from the University of Illinois credits the surprising outcome to highly positive blending margins at the start of the spike, which provided a healthy margin cushion as ethanol prices rose, as well as a 20 percent increase in wholesale gasoline prices.

    ethanol527a
    [A]n analysis by the U.S. Department of Energy in November 2012 calculated a “break-even price of ethanol, above which it is more economic for the refiner to reduce ethanol volumes and alternatively produce more octane within the refinery.” That analysis indicates that the breakeven ethanol price is about 10 percent higher than the price of CBOB gasoline. That is, if the price of ethanol is less than 110 percent of the price of CBOB gasoline, there are positive economic returns to blending E10 for octane enhancement rather than producing more octane from other petroleum processes in the refinery… The ratio was much less than 110 percent for most of the period, and during the recent ethanol price spike rose above this breakeven level only during the last two weeks of March 2014. So, despite the huge spike in ethanol prices (about 60 percent) this analysis shows that ethanol blending margins remained positive for all but a brief period. The key to explaining this surprising outcome is two-fold. First, wholesale gasoline prices were substantially above ethanol prices when the spike in ethanol prices began. This reflected crude oil prices that remain at relatively high levels and a drop in corn prices. Second, not only did wholesale gasoline prices start at relatively high levels, they increased substantially at the same time as ethanol prices. At the end of December 2013 the Chicago CBOB price was $2.49 per gallon, but had risen to $2.95 per gallon by mid-May 2014. This is an increase of almost 20 percent.

    The analysis concludes that ethanol blending margins becoming negative for such a short period of time with record high ethanol prices shows how firmly entrenched ethanol has become as the cheapest source of octane currently available for E10 gasoline blends.

    Ethanol, Ethanol News